India's equity market is witnessing a historic surge of IPOs, highlighted by the $1.3 billion offering of LG Electronics India Ltd. which was a full subscription in just six and a half hours on October 7, thus, making the fastest major IPO in 17 years.
The country's IPO market, which is already exceeding $16 billion in proceeds for 2025, is going to be a close match to last year's record $21 billion, thus, making India one of the hottest places for public listings globally.
The dominance of domestic investors is the main characteristic of this boom. Local mutual funds, insurers, and retail investors have become the most significant contributors to IPO subscriptions, accounting for nearly 75% of the subscriptions.
The highest on record, while foreign participation declines further. This is a structural shift towards a capital market that can sustain itself and is less dependent on global funds.
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LG's IPO, which was extraordinarily oversubscribed at a rate of $200 million an hour, had 60% of Indian investors participating and it went up by 48% at the debut. Specialists point to the increased household investments in equities.
This is easy access to digital trading, and the fast growth of domestic institutional investors, whose shareholding in listed companies has hit a 25-year high, as the main reasons for this.
More than 80 companies, among which are big names like Reliance Jio, NSE, and Flipkart, are waiting for regulatory approval, so the Indian IPO pipeline is still very strong. Nevertheless, analysts warn that high valuations and too many oversubscriptions could be a challenge to the market's vigor in the coming months.
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